Company Number: 15253300

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: HIGH

Justification: The company, incorporated recently in November 2023, shows net liabilities of £6,279 as at 30 November 2024 despite having positive net current assets. The presence of negative shareholders' funds and a relatively small asset base, combined with accruals and deferred income exceeding total assets less current liabilities, indicates potential solvency and liquidity challenges typical of a very early-stage micro entity.

2. Key Concerns:

• Negative net assets (£-6,279) and shareholders’ funds indicating an accounting deficit which may reflect accumulated losses or initial capital shortfall.
• High accruals and deferred income (£9,390) relative to total assets suggesting possible obligations or income recognition timing issues that could impact cash flow.
• Lack of operational scale: only one employee (the director) and micro-entity status limit revenue generation potential and financial resilience.

3. Positive Indicators:

• The company is active and compliant with filings; no overdue accounts or confirmation statements, indicating good governance and regulatory compliance.
• Positive net current assets (£835), meaning current assets exceed current liabilities, which is favorable for short-term liquidity.
• Owner/director control centralized with Mrs. Sarah Laws, who may be directly involved in the business with a designer background, potentially ensuring focused management.

4. Due Diligence Notes:

• Clarify the nature and terms of the accruals and deferred income to understand cash flow timing and any underlying liabilities.
• Review the company’s business plan and cash flow projections to assess funding sufficiency and sustainability given the negative net asset position.
• Monitor future financial statements for trends in profitability, asset growth, and capital injection or shareholder loans to offset initial deficits.
• Assess the director’s financial support capacity and any related party transactions.